Lamar Utility Board meeting of 4/23/24

At the April 23 meeting, the Board approved minutes of the last meeting as well as approving six purchase orders totaling $54,900.68.  Bills totaling $786,082.31 were also approved.  Absent from the meeting were Roger Stagner and Mayor Kirk Crespin.

An agreement to bind ARPA and LUB to the COMPOS EPC contract for the purpose of abandoning two gas transmission lines was discussed.  LUB is the owner of one gas line and ARPA is the owner of the second line.  Both lines run parallel to one another and each line runs from a CIG interconnect to LUB’s central plant (approximately 17 miles).  Neither line is currently in operation and has no value or utility to either party.  The agreement states that the lines be abandoned in accordance with federal, state and local laws and the most economical way to abandon the lines is to have them done simultaneously.  Both ARPA and LUB agreed to share any and all costs necessary, with each being responsible for 50% of the costs.

The first quarter 2024 Financial Report was approved.  There were no significant changes to the balance sheet.  Cash is up $228,915 from December and amounts receivable decreased by $194,195.  Total operating revenue for the month of March was $1,020,387, with operating costs of $937,080 resulting in gross operating income of $83,307.  When the non-operating revenues and expenses are taken into consideration, there is a net income for the month of $45,010.  YTD Income shows operating revenues of $3,341,717 and total operating costs are $2,900,152 resulting in gross operating income of $441,565.  When non-operating revenues and expenses are taken into consideration, there is a net income of $9,427 year to date.   YTD compared to 2023, shows that retail sales are up approximately $39,561 or 1% comparing March 2024 to March of 2023.  Overall operating expenses are up approximately $133,535 or 5% resulting in a net income of $9,427 for the year.

The Superintendent’s System Operating Report states that the wind turbines for the first quarter of 2024 have generated 2,773,309 MWH’s of electricity with an average capacity factor of 22.82%.  the wind turbines analysis showed that the 2024 first quarter generation is approximately 8.18% lower than the same time frame in 2023, and the capacity factor was approximately 7.21% lower than the same period in 2023.  The decrease in wind production is contributed to less wind in 2024.  The wind turbine crew started the semi-annual maintenance and inspection program on all turbines per GE’s guidelines.  During the last high windstorm, the line crew replaced a failed DE Epoxilator and a 35 ft. Class II wooden pole in the Korman area.  The 2024 LUB/ARPA Scholarship deadline has arrived.  This year a total of 5 completed applications were received for the combined $1,400 scholarship – 2 from Lamar, 3 from McClave and none from Wiley.  Two volunteers from the board are needed to assist Lisa Denman and Rory O’Neill in the selection process.  The selection committee will be given the applications without any identifying information on the application.  This anonymous process will allow the students to be judged solely on their academic achievements and community support.

By Barbara Crimond


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